randstad workmonitor, results wave 1-2015; growing to be 100 years old: impact on pensions, employability, and older workers biases.

Every generation tends to grow older than the last, celebrating your 100th birthday is no science fiction as the number of centenarians worldwide is rising at high speed. This aging trend has a major impact on society: the time we spend studying, working and retiring, our healthcare system, pension costs and so on. And, although debates on aging have been going on for quite some time, many employees do not yet oversee the impact of changing life expectancies: only 39% of the employees globally believe that children born today will live to be 100 years old, according to the results of the Randstad Workmonitor. While in fact in several countries, life expectancy is already at that level, and this number is increasing  fast.

Saving for retirement

Growing older, means working longer. And also more years of retirement. How do we organize for this? 77% of the surveyed employees expect to work longer than the current retirement age in their country. Most respondents expect to retire between the age of 60-65, while Dutch, Danish and Spanish employees expect to retire at 65-70. A longer period of retirement, also impacts pension savings; some estimates tell us we need to save up to 40% of our current income to be able to afford a comfortable pension. But 75% of employees are willing to save only 10% or less of their income for their pension.

Battling biases regarding older workers (55+)

With retirement ages shifting, and employees working longer, employees aged 55 and above become an increasingly growing group. Not even half (43%) of the employers have active policies in place to attract and retain older workers. One of the solutions mentioned by experts is having older workers stay in the company longer but work fewer hours. This is not something the respondents from the Randstad Workmonitor agree with, as 65% say 55+ workers should work comparable hours like younger generations.

And two other strong biases are also noted: 37% say 55+ workers are less productive than workers aged 35 and younger. And 36% believe 55+ workers take more sick leave then younger colleagues. These are common misperceptions, as in reality, productivity levels are comparable throughout the generations, and absenteeism is actually often lower in the 55+ age group then among younger employees.

Life-long learning

Working longer also impacts your employability, are you agile enough to stay productive and land a new job if necessary? 75% of the employees in the survey agree that employability is your own responsibility, not your employer’s. And a staggering 92% believe in life-long learning regardless of age. 82% believe refreshing skills & competencies every five years will enhance your employability. It is also understood that acquired skills and competencies last an entire career (74%). Another bias is the hard-held belief (68%) that it is harder to acquire new skills for workers aged 55 and above than it is for younger generations.

Quarterly recurring items

Mobility Index stays at 109

There is no change in the global average number of employees who expect to find another job within six months compared to the last quarter of 2014: the Mobility Index stays at 109. Underlying, there are some significant declines in mobility, like in China (-10), New Zealand (-9), Czech Republic (-7), and Portugal, Chile and Argentina (-5). On the other side of the spectrum are the UK (+7), Slovakia (+6), Canada, Germany and Malaysia (+5) with increases in mobility.

Actual job change at 22%

The number of employees worldwide who actually changed jobs in the last six months was 22% (compared to 23% end 2014). The majority of the actual job changes is people finding a job at a different employer. Underlying, actual job change dropped in China and Malaysia, although it is still high compared to the rest of the world. In Brazil, Portugal, Hungary, Poland, Chile, Germany and Argentina job change slightly decreased. In Slovakia there is a substantial increase in actual job change. The appetite to change jobs (applying and actively looking) is again highest in Sweden and India. Malaysia, Sweden, Switzerland and the UK show a slight increase in appetite compared to last quarter.

Job satisfaction: highest in Mexico and India

More than half of the countries score 70% or more in the combined top 2 boxes “very satisfied” and “satisfied”. Job satisfaction increased with 5% or more compared to last quarter in New Zealand, Chile, Argentina, the UK, Denmark, the US, Portugal and Spain. Job satisfaction dropped with 5% or more in Hungary, Turkey and Germany.

The Randstad Workmonitor

The Randstad Workmonitor was launched in 2003, and now covers 34 countries around the world, encompassing Europe, Asia Pacific, and the Americas. The Randstad Workmonitor is published four times a year, making both local and global trends in mobility regularly visible over time.

The Mobility Index, which tracks employee confidence and captures expectations surrounding the likelihood of changing employers within a six-month time frame, provides a comprehensive understanding of job market sentiments and employee trends. In addition to measuring mobility, also employee satisfaction and personal motivation, as well as a rotating set of themed questions are part of the survey.

The quantitative study is conducted via an online questionnaire among a population aged 18-65, working a minimum of 24 hours a week in a paid job (not self-employed). The minimal sample size is 400 interviews per country, using Survey Sampling International. Research for wave 1 was conducted January 21 – February 5, 2015.